South Korean car maker sights lack of incentives as a hurdle to adding hybrids to its local lineup

Kia: Hybrids need help in Australia

Kia Australia has blamed a lack of government incentives for its reluctance to launch a new wave of electric hybrid vehicles onto the local market.

Despite debuting two new hybrids at this week's Geneva motor show, the Korean manufacturer's local arm was unable to confirm either will make it to Australia.

They were a plug-in hybrid version of the large Optima sedan, and the all new Niro crossover which is built on a platform specifically optimized for hybrid powertrains.

The Niro is powered by a 1.6-litre petrol engine developing 77kW of power, backed by a 32kW lithium-ion battery with a targeted carbon dioxide emissions output of just 89g/km.

"It's not definitely out but it's more unlikely than not," Kia Australia spokesman Kevin Hepworth said of the Niro's chances of making it to Oz.

"At the moment, as a commercial exercise, hybrids are more expensive and they're not all that popular.

"You've got the problem that there's no government incentive whatsoever for manufacturers to sell a more expensive product in Australia to a market that doesn't want it."

He said that unlike in some countries, the added expense of a hybrid powertrain would be borne by customers, which could be too big a risk for Kia if resulting sales were low.

"As a three per cent market-share company we can't afford to make a mistake," Hepworth added.

"If someone in our position gets it totally wrong then it can be a very awkward situation."

Interestingly, it's a risk that sister company Hyundai seems willing to take.

It has confirmed that its new hybrid Ioniq hatchback – based on the same platform as the Kia Niro – will be launched in Australia next year.

Kia's European head of powertrain development, Dr Michael Winkler, said there was no doubt a hybrid-powered car would always be more expensive than its purely petrol driven equivalent thanks to the addition of an electrical motor and battery.

"You have two electrical components that you have to pay for so it cannot be the same price as a conventional gasoline engine," he said.

Unlike Australia, some European markets penalize vehicles with higher C02 emissions or offer other benefits, leading to better sales figures.

"In Europe we see the countries where there are high government incentives or high C02 taxes, the more fuel efficient vehicles become more attractive to the customer. That is definitely the case," Dr Winkler said.